Location: Bloomington, IN | Metro: Bloomington, IN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,000 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
The economics of Section 8 in ZIP code 47407, located in Bloomington, Indiana, are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $1130 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, reflecting the local rental market conditions.
Section 8 vouchers are designed to cover the difference between what a low-income family can afford and the SAFMR. Typically, the tenant is responsible for paying 30% of their adjusted income toward rent. If we assume an average adjusted income of $1500 for a household eligible for Section 8, the tenant would pay $450 towards rent ($1500 x 0.3).
The remaining amount is covered by the housing authority using the voucher program. In this case, the housing authority would pay the landlord $680 per month ($1130 - $450). However, it's important to note that the total reimbursement includes utility allowances, which are not included in the SAFMR figure. Utility allowances can vary but are typically around $200-$300 per month. Therefore, the landlord might receive an additional $250 for utilities, bringing the total reimbursement to approximately $930 per month.
This means that if the SAFMR remains at $1130 and the local market rent is higher, there will be a reimbursement gap. Conversely, if the local market rent is lower than $1130, the landlord could see a surplus. Given that the local market rent is currently listed as N/A, it's unclear whether the SAFMR is above or below the actual market rates in ZIP 47407.
To summarize, landlords in ZIP 47407 should expect a Section 8 voucher to cover up to $930 of a two-bedroom apartment's rent and utilities, based on the SAFMR and assuming a utility allowance of $250. The exact financial impact—whether it leaves a surplus or a gap—depends on the actual local market rents, which need to be determined to provide a precise analysis.
Data Sources: FMR data from HUD (2027).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.